“Do you even know how to do this f—ing job?”
That’s the old Steve Cohen, back when he was lashing out at portfolio managers and analysts who weren’t able to answer questions about a company.
The “new” Steve Cohen – still unable to trade outside money until 2018 – has announced plans to launch a $20 billion fund starting next year.
It wasn’t long ago that we were talking about SAC Capital’s $1.8 billion settlement with the Securities Exchange Commission.
We also were talking about how former SAC managers Mathew Martoma and Michael Steinberg were trading custom suits for prison suits.
Cohen was charged with failure to supervise his troops, all while overseeing annual performance numbers that averaged 29% during his run at SAC Capital.
Those consistent numbers are rare as unicorn tears.
Still, the SEC never had enough evidence to take aim at Cohen.
Instead, the hedge fund pled guilty to insider trading (that had never happened before.)
SAC Capital settled the case with the SEC for 10 figures.
And Cohen was allowed to
go back home to his balloon dog.
Unable to manage anyone else’s money for a few years, he started a family office.
However, since starting his $11 billion family office Point72 Asset Management, the returns haven’t been as incredible.
The firm returned 1% in 2016 compared to the more than 9% gain from the S&P 500.
So what is Steve to do now?
After its 10-year look into his firm, he will raise a middle finger to the SEC and announce plans for the largest hedge fund launch in history. His goal: $20 billion (although most of the money will include his family office figures rolled into the AUM).
To achieve this, he has said he will consider lowering his fees, which were once as high as 3% and 50% of all profits.
from FINALTERNATIVES
